If you have been actively following the real estate market in Singapore for the past 2 years, you would have remembered the hype that excites many Singapore private owners and real estate investors; the Enbloc Fever. Almost every month you would have heard of a private property development transacted a new record price from the Enbloc sales where real estate investor was looking out for properties that have enbloc potential.
The hype carried on for about 2 years before it died down due to the new cooling measures that the government had implemented in July 2018. Mainly due to the incremental of additional buying stamp duty (ABSD), a higher Development Charge (DC) and restrictions on the maximum number of new units which adds to the cost of land acquisition and thus, slowing down the enbloc fever.
Why did the government implement such ruling?
It was noticeable that the enbloc fever has caused the prices of new launch properties to increase, due to the fact of higher and higher land acquisition cost by the developers. It was to hold back the horses for new launch private properties so as to control the growth of the real estate market. However, real estate market sales still did fairly well despite the end of the enbloc fever.
According to the data from Knight Frank, it was seen that the total real estate investment sales increased by nearly 34 percent to $6.3 billion in Q1 2019 from $4.7 billion in Q4 2018. The real estate consultancy deemed the increase partially to the closing of state tenders during the period under review, with public sales soaring from $110 million in Q4 2018 to $3.1 billion in Q1 2019. Although the direction for the private residential market was more tamed after the implementation of the 8th round of cooling measures, developers were still actively looking for sites that have a convenient location and potential for future growth. For example, the government land sale (GLS) site at Middle Road still attracted 10 bids from developers during the close of its tender.
Read more: https://www.propertyguru.com.sg/property-management-news/2019/6/180612/real-estate-investment-sales-up-despite-slowing-en-bloc-market
The hype carried on for about 2 years before it died down due to the new cooling measures that the government had implemented in July 2018. Mainly due to the incremental of additional buying stamp duty (ABSD), a higher Development Charge (DC) and restrictions on the maximum number of new units which adds to the cost of land acquisition and thus, slowing down the enbloc fever.
Why did the government implement such ruling?
It was noticeable that the enbloc fever has caused the prices of new launch properties to increase, due to the fact of higher and higher land acquisition cost by the developers. It was to hold back the horses for new launch private properties so as to control the growth of the real estate market. However, real estate market sales still did fairly well despite the end of the enbloc fever.
According to the data from Knight Frank, it was seen that the total real estate investment sales increased by nearly 34 percent to $6.3 billion in Q1 2019 from $4.7 billion in Q4 2018. The real estate consultancy deemed the increase partially to the closing of state tenders during the period under review, with public sales soaring from $110 million in Q4 2018 to $3.1 billion in Q1 2019. Although the direction for the private residential market was more tamed after the implementation of the 8th round of cooling measures, developers were still actively looking for sites that have a convenient location and potential for future growth. For example, the government land sale (GLS) site at Middle Road still attracted 10 bids from developers during the close of its tender.
Read more: https://www.propertyguru.com.sg/property-management-news/2019/6/180612/real-estate-investment-sales-up-despite-slowing-en-bloc-market
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